As congress considers permanently eliminating the inheritance tax, while facing mounting deficits and additional costs due to Katrina no less, I wanted to bring up a couple of points about it.
Part of the American dream is that everyone has an equal opportunity. Not an equal end result, but an equal chance to achieve any results with your life.
Yet we do not have equal opportunity. Those who are rich have a lot more chances to be successful in life. They are better prepared, go to better schools, get guidance from parents who have professional jobs (and can afford to leave New Orleans before a hurricane hits it).
The inheritance tax slightly lessens that inequality of opportunity. It doesn't eliminate it. But generation by generation it lessens it. And that helps make equality of opportunity more true.
Second, this country produces more millionaires than any other per capita. Our system of government, our culture, our society all assist people in being successful. The vast majority of the rich would not be as rich, possibly not rich at all, in any other country.
Since our society and our government were key to the riches generated, its only fair that in return a small piece of that is returned to the government to help fund this system that enabled them to become wealthy. Yes there were taxes along the way, but one at the end for all they achieved is a fair payment for a system that was a key part of producing that wealth.
Third, a significant percentage of trust fund babies (I know a lot) don't give anything to society. They spend money on themselves but they don't create or produce or work in any meaningful way. The more productive members in society, the richer that society will be - for everyone.
Creating an inheritance tax that will return families to the ranks of those who have to work in 2 - 3 generations is of great benefit to society as a whole. Because those generations do have the wealth to get an education, start companies, or work for a company. A significant inheritance tax insures that they must do so.
Finally, in our present situation with a permanent deficit, war in Iraq that is not only costing hundreds of billions, but also the lives of thousands of citizens, and now Katrina - a tax cut for the extreemly wealthy is just sick. Even if they want to run away with they're money - they are Americans and need to do their share.
